Benchmarks end flat, Nifty settles below 22,250; VIX slips below 15

Domestic stock market closed flat on Friday after reaching record highs in early trade. Investor caution prevailed due to upcoming releases of key domestic economic data, leading to a reluctance in taking long positions. The data to be released on 29th February 2024 includes India`s Q3 GDP data, fiscal deficit numbers for January, and eight infrastructure industries data. The Nifty50 concluded below the 22,250 mark after hitting a record high of 22,297.50 in early trade. Within sectors, media, realty, and consumer durables shares saw gains, whereas PSU banks and oil & gas stocks experienced declines.

The barometer index, the S&P BSE Sensex, shed 15.44 points or 0.02% to 73,142.80. The Nifty 50 index lost 4.75 points or 0.02% to 22,212.70.

SBI (down 0.86%), TCS (down 0.84%) and ITC (down 0.65%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap gained 0.25% and the S&P BSE Small-Cap index rose 0.53%.

The market breadth was positive. On the BSE, 2005 shares rose and 1833 shares fell. A total of 98 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, declined 1.48% to 14.97.

Economy:

The Reserve Bank of India`s (RBI) monetary policy committee (MPC) expressed caution regarding inflation, according to the minutes of the MPC meeting released on 22nd February. The committee members, including RBI Governor Shaktikanta Das, highlighted concerns about uncertainty in food prices, citing it as a significant source of volatility for the overall inflation outlook. Governor Das also emphasised that geopolitical tensions and supply chain disruptions could further contribute to inflation risks.

Deputy Governor Michael Debabrata Patra emphasized the need for a restrictive monetary policy to maintain downward pressure on inflation while minimising the output costs of disinflation. Governor Das warned that recurring food price shocks could disrupt the ongoing disinflation process, posing risks of de-anchoring inflation expectations and generalising price pressures.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.20% to 7.076 as compared with previous close 7.062.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.9350, compared with its close of 82.8575 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement shed 0.11% to Rs 61,911.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.01% to 103.97.

The United States 10-year bond yield rose 0.41% to 4.343.

In the commodities market, Brent crude for March 2024 settlement declined 99 cents or 1.17% to $82.69 a barrel.

Global Markets:

European and Asian stocks advanced on Friday, as Nvidia`s blockbuster quarterly report boosted global sentiment.

German GDP fell 0.3% in the fourth quarter compared to the previous quarter, data released earlier Friday confirmed. U.K. consumer confidence dipped in February, new survey data from GfK showed Friday, indicating that high inflation continues to weigh on hopes of an economic upturn.

Wall Street achieved record highs on Thursday, driven by a surge in technology stocks, particularly fueled by positive earnings and guidance from NVIDIA Corporation, a prominent AI company. However, weak purchasing managers index readings for February suggested a decline in business activity in the U.S.

Stocks in Spotlight:

Orchid Pharma rallied 5.76% after the company has received an approval from US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Exblifep (Cefepime and Enmetazobactam injections).

Vodafone Idea surged 7.80% after the company said that its board will meet on Tuesday, 27 February 2024 to consider fund raising proposals, through equity or debt instruments.

Bajaj Auto shed 0.88%. The company said that it has made further investment of Rs 45.75 crore for additional 1% stake in Yulu Bikes, which is India�s largest shared electric two-wheeler mobility company.

Bandhan Bank added 2.36% after the company�s board has approved the appointment of Rajeev Mantri as the chief financial officer (CFO) and key managerial personnel (KMP) of the bank with effect from 22 February 2024.

Indian Railway Catering and Tourism Corporation rallied 3.07% after the company tied up with Bundl Technologies (Swiggy Foods) for supply & delivery of pre-ordered meals through the company`s e-catering portal.

Concord Biotech jumped 2.39% after the company received good manufacturing practices (GMP) certificate from Ministry of Health Pharmacy and Poisons Board (PPB), Republic of Kenya for its formulation facility located in Gujarat.

Kalyani Steels rose 1.93% after the company announced that it has signed a Memorandum of Understanding (MoU) with Government of Odisha for setting up manufacturing plants in the state.

SJVN declined 2.10%. The power generation company said that its wholly owned subsidiary, SJVN Green Energy has commissioned and achieved commercial operation date (COD) for its 50 megawatt (MW) gujrai solar power project in Kanpur, Uttar Pradesh.

Lancer Container Lines slipped 1.63%. The company said that it has signed a long-term contract with SYMCON Industries for buying new range of `marine containers`.

Power Finance Corporation (PFC) shed 0.65%. The company said that its board will meet on 29 February, 2024 to consider fund raising proposal through market borrowing program for the financial year 2024-25.

IPO Update:

The initial public offer (IPO) of GPT Healthcare received bids for 1,67,51,920 shares as against 1,97,63,327 shares on offer, according to stock exchange data at 17:00 IST on Friday (23 February 2024). The issue was subscribed 85%.

The issue opened for bidding on Thursday (22 February 2024) and it will closed on Monday (26 February 2024). The price band of the IPO is fixed at Rs 176 to Rs 186 per share. An investor can bid for a minimum of 80 equity shares and in multiples thereof.

The IPO of Juniper Hotels received bids for 5,99,20,720 shares as against 2,89,47,367 shares on offer, according to stock exchange data at 17:00 IST on Friday (23 February 2024). The issue was subscribed 2.07 times.

The issue opened for bidding on Wednesday (21 February 2024) and it will closed on Friday (23 February 2024). The price band of the IPO is fixed at Rs 342 to Rs 360 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

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